Electric rates to increase up to 13 percent in '06

Council bade farewell to a 38-year member.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
NEW WILMINGTON, Pa. -- Most New Wilmington Borough residents will see their electric bills increase by 11 percent to 13 percent in 2006.
Borough Councilman Kenneth Romig, finance committee chairman, reported Monday that electric rates have to increase in order to absorb transmission line rate increases passed to the borough by its Ohio supplier, AmpOhio.
High-tier users, those who use high amounts of electricity, will see increases up to 21 percent, Romig said.
But he pointed out that the increase brings the borough only to the level that Penn Power already charges its customers.
The borough buys electricity wholesale and sells it to residents. The borough also has avoided imposing property taxes on residents because the borough's operational costs are largely funded through proceeds from the sale of electricity.
Romig said officials in the past chose to support the borough through proceeds from sale of electricity because it spreads the cost of operations evenly in the borough where about half of the property is tax-exempt.
Collection of a property tax would put all the burden of supporting the borough on half the properties, he said.
Tentative budget
The rise in electric rates was part of the tentative 2006 budget Romig introduced Monday. He said that the budget is similar to this year's except for the electric rate increase, a sewer rate increase imposed in October, and a $450,000 expenditure for refurbishing the borough's sewage treatment plant. The borough will use $296,000 from capital reserves toward the project.
Council will meet again at 5 p.m. Dec. 20, when final budget adoption will take place. The proposed budget will be available for public inspection before then at the borough offices.
In other business, council directed the solicitor to prepare an ordinance to increase the occupational privilege tax by up to $42 to be used for emergency services. That ordinance will be presented at the January meeting. The state recently allowed such increases. The action could mean an additional $25,000 revenue for the borough, Romig said.
Council also bade farewell, with thanks, to Councilman Raymond Keefer, who is retiring after seven terms and 28 years on council. He formerly served as council president, president of the Pennsylvania Association of Boroughs, and Lawrence County's representative to the association for 15 years. He is a former high school and college teacher and news reporter at the New Castle News, and also served as director of the Lawrence County Learning Center.
He will be succeeded by Mike Boyd, who will be sworn in next month.
The January meeting was set for 7:30 p.m. Jan. 3 because of the Jan. 2 legal holiday.